SayPro Tasks to be Done for the Period (January SCMR-1):Contract Review and Audit: Review all active contracts that are nearing and audit their performance to assess whether they need to be renewed, renegotiated, or replaced.
SayPro Tasks to be Done for the Period (January SCMR-1)
1. Contract Review and Audit
Objective: To review all active contracts nearing expiration and conduct a comprehensive audit of their performance to determine whether they should be renewed, renegotiated, or replaced. This task is essential to ensure that all agreements align with the company’s evolving goals, compliance standards, and operational needs.
Sub-Tasks and Steps:
a. Identification of Contracts Nearing Expiration:
- Action: Create a list of all active contracts within the organization that are approaching their expiration dates within the next 60–90 days.
- Responsible Party: Contract management team or legal department.
- Due Date: January 10th, 2025.
b. Compilation of Contract Terms and Key Metrics:
- Action: Review each identified contract to extract key terms, including duration, deliverables, performance clauses, service levels, and financial obligations.
- Responsible Party: Legal department or contract manager.
- Due Date: January 12th, 2025.
c. Performance Assessment:
- Action: Assess the performance of each contract by reviewing fulfillment of terms, delivery of agreed-upon services, and any service level agreements (SLAs) or performance metrics. This may involve gathering feedback from relevant stakeholders (e.g., department heads, project managers).
- Responsible Party: Project managers, department heads, or performance analysts.
- Due Date: January 18th, 2025.
d. Evaluation of Financial and Operational Impact:
- Action: Analyze the financial impact of the contract, including costs, savings, and any unforeseen expenditures or inefficiencies. Ensure that the agreement continues to provide value in terms of ROI.
- Responsible Party: Finance department and operations team.
- Due Date: January 20th, 2025.
e. Compliance and Legal Review:
- Action: Verify whether the contract is compliant with any changes in applicable laws, industry regulations, or internal policies since its initiation. Any changes to regulatory requirements, tax laws, or legal conditions should be identified.
- Responsible Party: Legal and compliance teams.
- Due Date: January 22nd, 2025.
f. Risk Assessment:
- Action: Conduct a risk analysis to identify any potential risks associated with contract renewal, renegotiation, or non-renewal. This includes supplier stability, market conditions, and operational risks.
- Responsible Party: Risk management team.
- Due Date: January 24th, 2025.
g. Stakeholder Consultation:
- Action: Organize consultations with key internal stakeholders (e.g., procurement, legal, finance, and relevant department managers) to gather input on the future of the contract, including the potential need for renegotiation or replacement.
- Responsible Party: Contract manager or procurement officer.
- Due Date: January 26th, 2025.
h. Recommendations and Action Plan:
- Action: Based on the findings from the performance assessment, financial impact review, compliance check, and risk analysis, create a detailed recommendation report for each contract. The options should include:
- Renewal: If performance has been satisfactory and renewal is in the best interest of the organization.
- Renegotiation: If terms need to be adjusted (e.g., pricing, deliverables, service levels) to meet current business needs.
- Replacement: If the contract no longer meets the operational, financial, or legal needs of the organization, consider sourcing new suppliers or agreements.
- Responsible Party: Contract management team, with input from legal, finance, and other key stakeholders.
- Due Date: January 29th, 2025.
i. Contract Renewal or Replacement Process:
- Action: For contracts identified for renewal or renegotiation, initiate the required process:
- Renewal: Initiate the renewal process by negotiating new terms or simply extending the existing agreement, if applicable.
- Renegotiation: Open discussions with the other party to adjust contract terms. Ensure that the renegotiated contract is aligned with business goals, operational needs, and legal requirements.
- Replacement: If the contract will not be renewed or renegotiated, begin the sourcing process for a replacement contract or vendor.
- Responsible Party: Contract management and procurement teams.
- Due Date: Ongoing through February, as necessary.
j. Final Review and Documentation:
- Action: Ensure all changes or decisions regarding the contract are documented, including new terms, renegotiated clauses, or reasons for non-renewal or replacement. This documentation will be important for future audits and compliance checks.
- Responsible Party: Legal and contract management teams.
- Due Date: February 5th, 2025.
Key Deliverables:
- Contract Review Report: Comprehensive analysis of all contracts nearing expiration, including performance assessment, financial impact, and compliance check.
- Recommendation Report: Clearly laid out options for each contract (renew, renegotiate, replace) with supporting rationale.
- Updated Contracts: Renewed or renegotiated contracts or sourcing documents for replacement contracts.
Expected Outcomes:
- Improved alignment between contract terms and company objectives.
- Mitigation of legal, operational, and financial risks.
- Enhanced operational efficiency and cost-effectiveness through contract renegotiation or replacement.
Leave a Reply